Remand beyond show cause notice scope is unsustainable when appellate authority relies on a new ground.

An appellate remand cannot be sustained when it rests on a ground not raised in the show cause notice. The Department had questioned denial of notification benefit only on specified grounds concerning the certifying authority and whether wires and cables fell within the notification, but the Commissioner (Appeals) remanded the matter on a different basis by treating the benefit as confined to pollution control equipment manufacturing units. That new basis travelled beyond the notice, so the remand order was set aside and relief followed for the assessee.

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Issues: Whether the order of remand passed by the Commissioner (Appeals) was sustainable when it proceeded on a ground not raised in the show cause notice.

Analysis: The Department had proposed denial of the notification benefit on specified grounds relating to the certifying authority and the coverage of wires and cables under the notification. The appellate authority, however, remanded the matter on a different basis, namely that the benefit was available only to pollution control equipment manufacturing units. The basis of remand thus travelled beyond the scope of the show cause notice, and the order could not be sustained on that footing.

Conclusion: The remand order was unsustainable and was set aside, with the appeal allowed in favour of the assessee.

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